An Empirical Study of Affecting Social Responsibility on Corporate Value through Social Environment

Abstract

The social responsibility of a company is to make a social contribution through its management activities by socially responsible companies. Businesses should strategically build a practical link between business and society through social contribution. This is another way in which companies contribute to society. If companies have a vision of contributing to society, business activities themselves should be able to create value in society. Efforts to strengthen social contribution activities by enhancing value are critical. Because corporate social responsibility is a channel for realizing corporate values and visions. Thus, corporate social responsibility and social contribution activities are strategically linked together. The purpose of this study is to analyse the relationship between the social environment and the social responsibility of an enterprise in its corporate value. This study established a research model through a prior study and the results of the study were derived through empirical analysis. The main results of this study are as follows: First, it has been shown that corporate social responsibility has a significant impact on the social environment (economy, politics, society and finance). Second, the social environment in the economic, political and financial aspects had a significant impact on entrepreneurship, but the social environment in the social aspect did not have a significant impact on entrepreneurship. This has been empirically demonstrated by this paper that corporate social responsibility is not an investment in the vague value of the social environment on the society. Thus, an entity can enhance its value in an economy, politics and finance of social environment by routinely performing its social responsibilities on the basis of profits generated by its management activities.